Underrepresented people and places seem to be missing out on two federal programs that seek to boost technological innovation among small businesses.
Together billed as America’s Seed Fund, the Small Business Innovation Research (SBIR) program and its companion Small Business Technology Transfer (STTR) program are managed by the Small Business Administration (SBA) and delivered in collaboration with 11 federal agencies.
The highly competitive award-based programs seek to boost early-stage research and accelerate technology transfer through non-dilutive federal R&D funding, with four congressionally mandated goals: using small business to meet federal R&D needs; increasing private sector commercialization derived from federal R&D; stimulating technological innovation; and fostering and encouraging participation by minority and disadvantaged persons.
In service of those goals, winning entrepreneurs generally receive awards of up to $275,000 (for Phase I awards) or $1.8 million (for Phase II) as incentives to pursue high-risk projects, validate their concepts, and effectively accelerate technology development. Consequently, the program is an important tool for energizing regional innovation economies, especially given the current decline in seed funding for firms and the skew of private VC capital toward dominant coastal metro areas.